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HS Orka Annual Financial Statements 31 December 2009 - Ársreikningur HS Orku hf 2009
Reykjanesbaer, Iceland, February 6, 2010 - The annual financial statements for the first operating year of HS Orka hf. in its present form were approved at the Board of Directors' meeting today February 6, 2010.
The Company's profit for the year amounted to ISK 6,798 million [USD 53 million] compared to a loss of ISK 11,682 million for the year 2008. After taking into account income and expenses recognized under equity, comprehensive income for the year amounted to ISK 8,155 million [USD 64 million] compared to a loss of ISK 4,744 million for the year 2008. An increase in comprehensive income is mainly due to decrease in foreign exchange loss and fair value changes of embedded derivatives. Equity ratio was 33.5%, whereas it was 16.3% at the beginning of the year.
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Ársreikningur HS Orku hf fyrir árið 2009 var samþykktur af stjórn félagsins á stjórnarfundi félagsins sem haldinn var í dag.
Hagnaður félagsins nam 6,8 milljörðum samanborið við tap að upphæð 11,7 milljörðum á árinu 2008. Þegar tekið hefur verið tillit til tekna og gjalda færðra á eigið fé er afkoman í heild jákvæð um um 8,15 milljarða samanborið við tap að upphæð 4,7 milljarða árið áður. Betri heildarafkoma stafar í meginatriðum af hækkun á álafleiðum (framtíðarvirði álsölusamninga) og lækkun gengistaps frá árinu 2008.
Samkvæmt ársreikningnum námu heildartekjur HS Orku hf á árinu tæpum 6,3 milljörðum samanborið við 5,4 milljarða árið áður. Þessa tekjuaukningu má í meginatriðum rekja til þjónustutekna frá HS Veitum hf sem byggja á verksamningi milli fyrirtækjanna. Samsvarandi aukning er þá á kostnaðarhlið fyrirtækisins. Aðrar tekjur námu 784 milljónum og skapast af sölu lands og hitaréttinda.
“Þrátt fyrir að árið hafi verið erfitt fyrir íslenskt efnahagslíf þá hefur HS Orku hf tekist að ná mjög hagstæðri rekstrarafkomu á árinu og náð að bæta eiginfjárstöðu verulega eða úr 16,3% í 35,5%,” segir Júlíus Jónsson, forstjóri HS Orku hf. “Meginástæðan er hækkun álverðs og stöðugra gengi íslensku krónunnar og miklvægt að sú þróun haldi áfram”.
Framleiðslu- og sölukostnaður nam 4,4 milljörðum samanborið við 3,1 milljarð árið áður. Aukning skapast vegna þjónustu við HS Veitur hf svo og aukningu kostnaðar við framleiðslu og sölu orkunnar. Önnur rekstrargjöld námu 499 milljónum samanborið við 377 milljónir á árinu 2008. Aukning annarra rekstrargjalda stafar aðallega af sérstakri afskrift þróunarkostnaðar að upphæð 142 milljónir.
Frekari upplýsingar gefur:
Júlíus Jónsson, forstjóri, sími 422 5200 eða 860 5208
Rekstrarreikningur og yfirlit yfir heildarafkomu ársins 2009
HS Orka Annual Financial Statements 31 December 2009
Reykjanesbaer, Iceland, February 6, 2010 - The annual financial statements for the first operating year of HS Orka hf. in its present form were approved at the Board of Directors' meeting today February 6, 2010.
The Company's profit for the year amounted to ISK 6,798 million [USD 53 million] compared to a loss of ISK 11,682 million for the year 2008. After taking into account income and expenses recognized under equity, comprehensive income for the year amounted to ISK 8,155 million [USD 64 million] compared to a loss of ISK 4,744 million for the year 2008. An increase in comprehensive income is mainly due to decrease in foreign exchange loss and fair value changes of embedded derivatives. Equity ratio was 33.5%, whereas it was 16.3% at the beginning of the year.
According to the statement of comprehensive income, HS Orka hf.'s operating revenue in the year amounted to ISK 6,226 million compared to ISK 5,425 million for the year 2008. The increase in revenue is mainly due to service fees for services provided to HS Veitur hf., but the companies have entered into a service agreement thereon. Other revenues amounted to ISK 784 million and are due to sale of land and geothermal rights.
“Despite a difficult year for the Icelandic economy, HS Orka has been able to produce a very positive outcome for this year in terms of profit and an increase in the equity ratio from 16.3% to 35.5%.” says Julius Jonsson, CEO of HS Orka, adding that “The main reasons for the improved results are the increase in the aluminum price and a more stable Icelandic Krona, and it's important that this development continue”.
Production cost and cost of sales amounted to ISK 4,419 million compared to ISK 3,066 million for the year 2008. The increase in production cost and cost of sales is due to increased cost of production, sale and distribution of electricity, in addition to cost of services provided to HS Veitur hf. Other operating expenses amounted to ISK 499 million compared to ISK 377 million for the year 2008. Increase in other operating expenses is mainly due to impairment of development cost in the amount of ISK 142 million. Aluminum prices increased significantly since the beginning of the year. Therefore, the future value of aluminum plant agreements (fair value changes of embedded derivatives) has increased by in excess of ISK 7.069 million.
Net finance income amounted to ISK 5,476 million in the year compared to net finance loss in the amount of ISK 15,516 million in 2008. The weakening of the Icelandic krona against foreign currencies lead to a ISK 1,245 million foreign exchange loss whereas in the previous year foreign exchange loss amounted to ISK 10,408 million. Interest expenses increased from 2008 from ISK 632 million to ISK 764 million. No finance expenses were capitalized during the year compared to ISK 34 million in 2008. Increase in fair value of the Company's embedded derivatives amounted to ISK 7,069 million in the period compared to a decrease of ISK 2,687 million in 2008.
According to the balance sheet as at 31 December 2009, HS Orka hf.'s assets amounted to ISK 42,069 million. Assets increased by ISK 5,590 million from the beginning of the year. Increase in assets is mainly due to fair value changes in derivatives and revaluation on operating assets.
HS Orka hf.'s liabilities amounted to ISK 27,981 million according to the balance sheet, whereof short term liabilities amounted to ISK 5,392 million. Liabilities have decreased by ISK 2,564 million from the beginning of the year. Thereof, decrease in long term liabilities amounts to ISK 613 million. Short term liabilities decreased by ISK 1,951 million, which is mainly explained by the payment of short term liabilities due to cost of projects.
During the year the management has been in a process of negotiations with its banks since the weakening of Icelandic krona in year 2008 which led to an increase of the Company's loans resulting in a breach of covenants. Subsequent to year-end, the banks revised the covenants equity ratio and operating ratio, increased interest and changed repayment schedules. The current ratio at year end was low but will be increased by a sale of bonds classified as non-current and there is also very unlikely that the currency and interest rate swap liability classified as current liability will be paid in full in year 2010.
During the year the management has been in a process of negotiations with its banks since the weakening of Icelandic krona in year 2008 which led to an increase of the Company's loans resulting in a breach of covenants. Subsequent to year-end, the banks revised the covenants equity ratio and operating ratio, increased interest and changed repayment schedules. The current ratio at year end was low but will be increased by a sale of bonds classified as non-current and there is also very unlikely that the currency and interest rate swap liability classified as current liability will be paid in full in year 2010.
Operating outlook for HS Orka hf. is good despite uncertain economic outlook. The management of the Company believes that there is an increasing demand for electricity in Iceland in coming years and the plan is to increase the Company's capacity in that respect. As access to new funding sources is limited, there is uncertainty about the timing of increase of Company's capacity in the future but preparations are ongoing. Researches will be carried out on further power plant options and various licenses are being obtained in relation thereto. The largest single projects are research drilling and other preparation for new power plants, in addition to increased down pumping and construction of supply systems.
For further information, contact:
Julius Jonsson, CEO, Phone +354 422 5200, mobile +354 860 5208.
HS Orka hf. Financial Report 2009
About HS Orka
HS Orka is the largest privately owned energy company in Iceland. Installed geothermal power capacity in total is 175 megawatts from the Svartsengi combined heat and power plant and Reykjanes power plant. The Svartsengi plant also generates 150 MW of thermal energy for district heating. The electrical supply is partly sold in USD to industrial users under long term power purchase agreements. HS Orka is adding 80 MWe to existing facilities in Reykjanes and is on track with development of additional 150 MWe in other geothermal areas.